The latest hefty fuel price increases, which are the highest in many years, are going to make life miserable for the majority of the people.
The Energy and Petroleum Regulatory Authority (Epra) has announced sharp increases for the October–November cycle, pushing petrol and kerosene prices to historic record highs. The new prices will remain in force until November 14.
Driven by the escalating Middle East conflict, rising import bills, and a depleted fuel subsidy fund, the super petrol price has been increased by Sh12.93, bringing it to Sh226.96 per litre. This has broken the 2023 record. The diesel price is up by Sh9.90, to Sh227.76 per litre. Ironically, kerosene, which many poor families rely on for lighting and cooking, has seen a Sh28.49 price increase to Sh219.87 per litre.
The impact of the fuel price increases is already being felt in the higher public transport fares. The Matatu Owners Association has told commuters to expect an immediate 10 per cent rise in fares to cover the surge in diesel costs.
More expensive food and household items
Also going to skyrocket is the cost of goods. This is inevitable because businesses rely on diesel for manufacturing and transporting products. Of course, these expenses are inevitably passed down to consumers.
People should now brace themselves for more expensive food and household items. The massive increase in kerosene prices directly affects the majority of lower-income households that rely heavily on this fuel for their daily cooking and lighting.
Some leaders and ordinary citizens have criticised the increases, warning that rising fuel costs are worsening the cost of living. The government reduced the Value Added Tax (VAT) on petroleum products from 16 to eight per cent in April after crude oil prices surged due to the war pitting the United States and Israel against Iran.
There is a need to further cushion Kenyans against the rising fuel prices to lessen the adverse impact on the cost of living by providing subsidies and also reviewing taxes.